Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
 6 Months Ended 75 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (545,112) $ (880,318) $ (17,268,465)
Adjustments to reconcile net loss to net cash used in operating activities:      
Issuance of common stock for services 237,833 642,908 1,716,563
Loss on settlement    43,200 108,185
Consultant Stock Expense       48,000
Amortization of prepaid shares issued for services    32,500 11,183,259
Officer shares contributed to third party consultant       299,737
Write off of subscription receivable       325
Write off of previously capitalized patent costs       26,855
Foreign currency transaction (loss) gain    (10,113) 43,256
Depreciation expense 523 708 14,734
Amortization of debt discount 14,789    14,789
Change in fair value of warrant derivative liability 31,634    31,634
Changes in operating assets and liabilities:      
Escrow account    653   
Accounts receivable       (664)
GST receivable       798
Other assets (3,345) 844 (770)
Accounts payable 74,120 26,934 377,192
Employee benefit liability 5,621 878 56,270
Accrued expenses 77,861 62,357 400,670
Accrued interest 4,256 1,551 194,376
NET CASH USED IN OPERATING ACTIVITIES (101,820) (77,898) (2,753,256)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of equipment       (14,786)
Patent costs       (25,726)
NET CASH USED IN INVESTING ACTIVITIES       (40,512)
CASH FLOWS FROM FINANCING ACTIVITIES      
Bank Overdraft (5)      
Sale of common stock       1,479,675
Contributed capital       495,665
Subscriptions receivable - related party       22
Related party expenses paid on behalf of company 23,937    81,199
Loan repayments of principal stockholder (37,032) (33,379) (84,726)
Investor advances-related party       79,112
Proceeds from convertible promissory notes 103,959    246,265
Other Loans    37,362 37,506
Loan proceeds from principal stockholder    70,042 492,988
NET CASH PROVIDED BY FINANCING ACTIVITIES 90,859 74,025 2,827,706
Effect of exchange rate changes on cash 11,697 4,188 (33,202)
NET INCREASE IN CASH 736 315 736
CASH AT BEGINNING OF PERIOD    179   
CASH AT END OF PERIOD 736 494 736
Supplemental Disclosure of cash flow information      
Cash Paid during the period: Interest         
Cash Paid during the period: Income Tax         
Supplemental disclosure of non-cash investing and financing activities:      
Conversion of notes payable to common stock       341,208
Conversion of accrued interest to common stock    1,896 195,544
Gain on related party debt conversion       9,252
Prepaid common stock issued for services 6,667    10,867,632
Advance from Investor - related party, reclassified to common stock       80,000
Conversion of accrued expenses to common stock 27,500 21,000 101,272
Conversion of convertible notes and accrued interest to common stock    75,000 150,894
Conversion of loan payable to convertible debenture 27,963    27,963
Discounts realted to warrants issued with convertible debenture $ 133,095    $ 133,095